Credit Notes
A credit note cancels or partially reduces a posted invoice. It is a legal document — also called a credit memo — required whenever a customer returns goods, overpays, or receives an incorrect invoice.
Process lifecycle
When to use a credit note
Use a credit note when: a customer returns goods or services, a customer has overpaid and needs a refund, the original invoice contained an error in price or quantity, or a discount needs to be applied after the invoice was posted. Never delete a posted invoice — always use a credit note to reverse it.
View existing credit notes
The credit notes list shows all existing credit notes with their number, customer, dates, amounts, payment status, and overall status. Credit notes display negative amounts — they reduce what the customer owes.
Add a credit note from an invoice
The most common way to create a credit note is directly from the original invoice. Open the posted invoice, click Add Credit Note, and choose the credit method.
Create a standalone credit note
You can also create a credit note independently without a source invoice. Fill in the customer, date, journal, and add the credit lines manually. This is useful when issuing a credit for a future purchase or as a goodwill gesture.
Confirm and apply the credit note
Credit notes are created in Draft and can be edited before confirming. Click Confirm to post the credit note. If the credit note was created from an invoice using Full Refund, Odoo automatically reconciles it against the original invoice — both documents are marked as paid with zero balance.